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A mutual fund having billions of dollars in assets will [#permalink]
19 Jul 2012, 14:38

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Difficulty:

15% (low)

Question Stats:

69%(01:52) correct
31%(01:02) wrong based on 1245 sessions

A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent(B) companies, and it is rare to hold at least one percent or more(C) companies and rarely do they hold more than one percent(D) companies, so that they rarely hold more than one percent(E) companies; rarely do they hold one percent or more

Re: A mutual fund having billions of dollars in assets will [#permalink]
19 Jul 2012, 19:06

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betterscore wrote:

A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent(B) companies, and it is rare to hold at least one percent or more(C) companies and rarely do they hold more than one percent(D) companies, so that they rarely hold more than one percent(E) companies; rarely do they hold one percent or more

Very good question,

Meaning,

A big MF company invests money | in many corporations | so that its investment remains around 1% in each corporations.

Structure,

A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

,rarely holding is for Mutual fund NOT companies havingbillions of dollars - holding (verb+ing) modifier is showing an action of the subject MUTUAL FUND _________________

Re: A mutual fund having billions of dollars in assets will [#permalink]
20 Jul 2012, 10:19

1

This post receivedKUDOS

betterscore wrote:

A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent(B) companies, and it is rare to hold at least one percent or more(C) companies and rarely do they hold more than one percent(D) companies, so that they rarely hold more than one percent(E) companies; rarely do they hold one percent or more

Re: A mutual fund having billions of dollars in assets will [#permalink]
22 Jul 2012, 07:13

Expert's post

A simple open and shut case. ‘A mutual fund’ is singular and the use of ‘they’ is subject –pronoun mismatch. Therefore, C, D, and E are gone. Between A and B, the word 'at least' distorts the meaning in B. 'Rarely holding more than one percent' is not the same 'rarely holding at least one percent'. So A _________________

(1) Because of a "comma" the usage of "so that" is incorrect. The intended meaning is that the second part is just the modifier. If you put so that (I assume there is no comma), you will change the modifier part to the main part of sentence. Thus, even though you change plural pronoun "they" to singular pronoun "it", D is still incorrect.

(2) Verb-ing modifier with a comma --> modifies a preceding clause --> the modifier can tell you the result of the preceding clause-- OR --- provide more information. In this case, the modifier should tell the result of the action "investing in hundreds of companies" --> the result is the fund rarely holds more than 1% in of the shares of any particular corporation.There is no reason to replace the modifier at the beginning as in your example. Thus, your "new" A and D are pretty the same in meaning.

Best regards. _________________

Please +1 KUDO if my post helps. Thank you.

"Designing cars consumes you; it has a hold on your spirit which is incredibly powerful. It's not something you can do part time, you have do it with all your heart and soul or you're going to get it wrong."

(1) Because of a "comma" the usage of "so that" is incorrect. The intended meaning is that the second part is just the modifier. If you put so that (I assume there is no comma), you will change the modifier part to the main part of sentence. Thus, even though you change plural pronoun "they" to singular pronoun "it", D is still incorrect.

(2) Verb-ing modifier with a comma --> modifies a preceding clause --> the modifier can tell you the result of the preceding clause-- OR --- provide more information. In this case, the modifier should tell the result of the action "investing in hundreds of companies" --> the result is the fund rarely holds more than 1% in of the shares of any particular corporation.There is no reason to replace the modifier at the beginning as in your example. Thus, your "new" A and D are pretty the same in meaning.

Best regards.

Hi there,

I would like to contradict

,so that independent clause (Is correct usage which shows a result)

True: Verb-Ing modifies preceding clause or presents a result of a preceding clause. However , per the meaning of sentence it is correct to say

Rarely holding more than 1%, MF will invest...... (How MF will invest in companies...).....

, so that shows the result of the main clause here is what should be the intended meaning

Re: A mutual fund having billions of dollars in assets will [#permalink]
13 Sep 2013, 01:50

TGC wrote:

, so that shows the result of the main clause here is what should be the intended meaning

This is not the intended meaning. so that would convey that mutual funds intentionally do not hold more than one percent of the shares of any particular corporation.

But the only intention of mutual funds is actually to invest money in hundreds of companies. The outcome (consequence) of this strategy is that mutual funds end up holding not more than one percent of the shares of any particular corporation.

In other words, holding not more than one percent of the shares of any particular corporation is just a consequence; so that would not convey consequence.

In fact, so that would reverse the intended meaning. The intended meaning is:

1. Mutual funds invest in hundreds of companies.

2. As a result, mutual funds end up holding not more than one percent of the shares of any particular corporation.

so that depicts:

1. The intention of mutual funds is to hold not more than one percent of the shares of any particular corporation.

Re: A mutual fund having billions of dollars in assets will [#permalink]
06 Jan 2014, 09:02

betterscore wrote:

A mutual fund having billions of dollars in assets will typically invest that money in hundreds of companies, rarely holding more than one percent of the shares of any particular corporation.

(A) companies, rarely holding more than one percent(B) companies, and it is rare to hold at least one percent or more(C) companies and rarely do they hold more than one percent(D) companies, so that they rarely hold more than one percent(E) companies; rarely do they hold one percent or more

Subject is mutual fund, and its antecedent needs to be singular, C/D/E gone since they use "they". "it" in B is ambiguous and may refer to "companies", so A is the best option.

Who is the 'they'? If we are referring to the companies than doing so is misleading. The original sentence makes it clear the mutual fund is doing the holding.

(D) companies, so that they rarely hold more than one percent

Same as (C).

(E) companies; rarely do they hold one percent or more

Once again, the misleading 'they.'

Sir Can you explain Option A little bit more. Thanks!

Hi,

Choice A correctly uses the comma + verb- ing modifier to modify the preceding clause. The comma + verb –ing modifier presents either additional information about the preceding clause or the result of that clause. Here it presents the result of the preceding clause. So, essentially it means that the author is trying to say that because a mutual fund with a lot of money generally invests in a number of companies, it rarely holds more than one percent of the shares of any particular company.

Now typically, the information given in the comma+ verb –ing modifier should make sense with the subject of the modified clause. Let’s check the same here:

A mutual fund (with a particular feature) rarely holds more than one percent of the shares of any particular corporation.

As you can see, the information given in the modifier (holding…corporation) does make sense with the subject of the modified clause (a mutual fund).

To understand the concept and various uses of comma + verb –ing modifier more, please refer to our in depth article on the subject here :